Chinese e-commerce giant Meituan issued a profit warning on February 13, predicting a net loss of about 23.3 billion yuan to 24.3 billion yuan for the year 2025, a drastic change from the profit of 35.808 billion yuan in the previous year. The company attributed the losses to increased ecological investment and overseas expansion to cope with intense competition, with the trend of losses potentially continuing into the first quarter of 2026.
According to reports from various media outlets on February 13, including The Paper, Daily Economic News, Securities Times, and Science and Technology Innovation Board Daily, Meituan released a profit warning announcement on the Hong Kong Stock Exchange, anticipating a loss of approximately 23 billion to 24.3 billion yuan for the year ending December 31, 2025, compared to a profit of 35.808 billion yuan in 2024.
The announcement indicated that the losses mainly stemmed from the core local business segment, which shifted from an operational profit of around 52.415 billion yuan in 2024 to an operational loss of 6.8 to 7 billion yuan in 2025, resulting in a nearly 60 billion yuan gap in profit. Additionally, the ongoing increase in overseas business investment further dragged down overall performance.
In the previous disclosed quarterly reports, Meituan achieved revenue of 95.488 billion yuan in the first three quarters of 2025, a 2.0% year-on-year increase, but recorded an adjusted net loss of 16.01 billion yuan. The core local business segment has turned into an operational loss of 14.1 billion yuan, indicating a significant pressure on profitability.
Moody’s, the international rating agency, revised Meituan’s outlook from “stable” to “negative” on February 10, expressing concerns about the company’s ability to recover profits in the fiercely competitive food delivery business environment.
Regarding the reasons for the losses, Meituan stated in the announcement that the unprecedentedly fierce competition in 2025 led the company to strategically increase investment in the ecological system to enhance core strengths and drive sustainable growth.
Specific measures include:
– For consumers: strengthening marketing promotions, enhancing price competitiveness and brand influence, increasing user activity and stickiness.
– For delivery: increasing rider incentives, enriching benefits, and ensuring delivery quality.
– For merchants: supporting merchants in optimizing operations, expanding customer sources, and upgrading operational modes.
However, these investments directly squeezed profit margins. The company expects that, due to continued competitive pressures, the trend of losses may persist into the first quarter of 2026.
During a conference call, Meituan CEO Wang Xing stated that the company will continue to invest necessary resources to defend its position in the instant retail market, emphasizing the focus on “doing the right things and creating long-term value.”
Despite the expanded short-term losses, Meituan claims that its operational situation remains robust, with sufficient cash reserves to support business development.
Public information shows that Meituan is a Chinese e-commerce company primarily focused on providing life services, originating from the operation of the Chinese group-buying website Meituan.com. It owns internet platforms such as Meituan.com, Meituan Food Delivery, Meituan Flash Purchase, Meituan Selection, Dazhong Dianping, and Meituan Bikes.
In terms of competitive landscape, competition in the instant retail sector is intensifying. Reports suggest that Alibaba is increasing investment in “Taobao Flash Purchase,” and promoting the application of the Thousand Question Model in instant consumer scenarios to enhance AI access and fulfillment system synergy, intensifying market share competition.
Facing competitive pressure, Meituan has made frequent moves recently. On February 5, the company announced the acquisition of 100% equity of the China business of Dingdong Maicai for approximately 717 million US dollars, with the divestment of overseas business before completion. The announcement highlighted that this acquisition would help strengthen the fresh supply chain capabilities and improve instant retail layout.
On February 12, Meituan upgraded the AI butler function of “Wen Xiaotuan,” expanding its capabilities for delivery, flash purchases, and dining scenarios to improve user decision-making efficiency and transaction conversion.
From the perspective of securities firms, CMB Securities believes that the fundamental logic of the Hong Kong technology sector remains unchanged; the overseas research team of Everbright Securities stated that the Hang Seng Technology Index has entered a strategic allocation range; Lulu, Chief Economist of Dongwu Securities, pointed out that the future trend will depend on macroeconomic data, policy pricing, and earnings realization.
Affected by the performance warning and intensified competition, Meituan’s stock price continues to weaken. With a decline of over 4.5% on February 13, it briefly fell below the 500 billion Hong Kong dollar market value mark. The closing price that day was 82.15 Hong Kong dollars, with a total market value of approximately 502.1 billion Hong Kong dollars, marking a cumulative decline of over 20% since the beginning of the year.
In summary, Meituan’s substantial losses in 2025 are not only a result of the fierce competition in the industry but also a phase of the company’s proactive investment in the ecological and technological layout. Short-term profit pressures have become a certainty, and whether the company can restore profitability through scale advantages and efficiency improvements in the future will be a focus of market attention.